Stocks went up 3 of the 4 days of the holiday-shortened week just ended, but the one down day was nearly equivalent to the total gain of the three positive days, so stocks ended about where they began the week. Next week, the final trading week of the year, may not be so benign, considering the latest news out of Washington. The much ballyhooed bipartisan agreement reached at the 11^th hour regarding government funding, defense, and a Covid relief package, is now stalled because Trump suddenly and unexpectedly is refusing to sign the bill. He must veto the bills in order for them to be overridden. If he instead does nothing (the so-called “pocket veto"), the bills will expire before a new Congress can be sworn in, and Congress will then be back to square one.

Meanwhile, the last 4 days of the year will see a year-end flood of stocks going ex-dividend these next 4 days, listed following, with ex-dividend date and yield shown. Assume dividends are paid quarterly unless otherwise noted.

Chimera (CIM), 12/29/2020, 11.29%.

MFA Financial (MFA), 12/29/2020, 7.46%.

Covanta Holding (CVA), 12/30/2020, 2.47%.

AGNC Investment (AGNC), 12/30/2020, 9.19%. AGNC pays monthly.

Yamana Gold (AUY), 12/30/2020, 1.84%.

Algonquin Power (AQN), 12/30/2020, 3.84%.

Ladder Capital (LADR), 12/30/2020, 8.14%.

Spirit Realty Capital (SRC), 12/30/2020, 6.31%.

STAG Industrial (STAG), 12/30/2020, 4.68%. STAG pays monthly.

Owl Rock Capital (ORCC), 12/30/2020, 9.53%.

Prospect Capital (PSEC), 12/30/2020, 13.19%. PSEC pays monthly.

Total SE (TOT), 12/30/2020, 6.96%. Note that the yield is before foreign tax withholding of 30% or so.

Annaly Capital Management (NLY), 12/30/2020, 10.74%.

BGS Foods (BGS), 12/30/2020, 6.15%.

Nucor (NUE), 12/31/2020, 3.08%.

Realty Income (O), 12/31/2020, 4.65%. O pays monthly.

Ventas (VTR), 12/31/2020, 3.67%.

None of the 15 CEFs I follow will be going ex-dividend next week.

Also, none of my stocks will be reporting next week.

As usual this time of year, upgrades/downgrades, etc. were minimal last week. The few regarding my stocks were as follows, per E*Trade, my source for this information. 

Welltower (WELL) was upgraded from Neutral to OverWeight at JP Morgan.

STAG Industrial (STAG) was downgraded from OverWeight to Neutral at JP Morgan.

Alliant Energy (LNT) was initiated at Market Perform at BMO Capital.

Royal Dutch Shell (RDS.B) was initiated at Buy at MKM Partners.  

Unless things improve on the political front, stocks may tumble next week. It would be a fitting end to a chaotic year. On the other hand, if things can get worked out in D.C., we could see a relief rally. Either way, the immediate future will likely see things get worse before they get better, hopefully in the next 3 to 5 months. I recommend not holding your breath while waiting for said improvement. My recommendation is to husband capital and wait for better buy prices, I believe they will be coming soon.

JT

For those who have been paying attention, yes, I missed posting last week. The past two weeks have seen the market bounce up and down in a fairly narrow range, with the result being the major averages are only slightly ahead of where they were two weeks ago. The market recognizes that the economy is slowing down as the Covid pandemic continues to rage, but the potential for further stimulus, plus the progress towards a vaccine, is offsetting the dim economics to some extent, so a major sell-off is not happening, at least not yet.  

First, to catch up, here are the stocks on my lists that went ex-dividend from 12/14/2020 through 12/18/2020. The name, symbol, ex-dividend date, and yield are shown.

Ares Capital (ARCC), 12/14/2020, 9.66%.

Crown Castle International (CCI), 12/14/2020, 3.42%.

Oaktree Specialty Lending (OCSL), 12/14/2020, 7.96%.

PotlatchDeltic (PCH), 12/14/2020, 3.21%.

Iron Mountain (IRM), 12/14/2020, 8.36%.

Digital Realty Trust (DLR), 12/14/2020, 3.35%.

Monroe Capital (MRCC), 12/15/2020, 12.08%.

Solar Capital (SLRC), 12/16/2020, 9.53%.

Horizon Technology Finance (HRZN), 12/16/2020, 9.33%. HRZN pays monthly.

Greif (GEF), 12/17/2020, 3.74%.

Apollo Investment (AINV), 12/18/2020, 11.30%.

General Electric (GE), 12/18/2020, 0.37%.

Next, here are the stocks on my lists that will be going ex-dividend from 12/21/2020 through 12/28/2020.

Gladstone Investment (GAIN), 12/22/2020, 8.01%. GAIN pays monthly.

Washington Real Estate Investment Trust (WRE), 12/22/2020, 5.13%.

Phillip Morris (PM), 12/22/2020, 5.58%.

Getty Realty (GTY), 12/23/2020, 5.25%.

Altria Group (MO), 12/24/2020, 7.86%.

Nine of the 15 CEFs I follow went ex-dividend last week. Frequency is monthly unless otherwise indicated.

BlackRock Debt Strategies Fund (DSU), 12/14/2020, 8.28%.

Nuveen Dow 30 Dynamic Overwrite Fund (DIAX), 12/14/2020, 7.45%. DIAX pays quarterly.

BlackRock Enhanced Equity Dividend Trust (BDJ), 12/14/2020, 7.15%.

Nuveen Real Asset Income and Growth Fund (JRI), 12/14/2020, 8.97%.

BlackRock Energy and Resources Trust (BGR), 12/14/2020, 8.98%.

Cohen & Steers MLP Income & Energy Opportunity Fund (MIE), 12/15/2020, 7.29%.

Cohen & Steers Quality Income Realty Fund (RQI), 12/15/2020, 7.75%.

Dividend and Income Fund (DNIF), 12/16/2020, 9.00%. DNIF pays quarterly.

CBRE Clarion Global Real Estate Income Fund (IGR), 12/18/2020, 8.84%.

Two more of my 15 CEFs will be going ex-dividend this week.

Eaton Vance Tax-Managed Diversified Equity Income Fund (ETY), 12/23/2020, 8.14%.

Miller Howard High Income Equity Fund (HIE), 12/23/2020, 7.20%.

General Mills (GIS) reported earnings last week on 12/17/2020, and Paychex (PAYX) will be reporting on 12/23/2020.

Upgrades/downgrades and so on regarding my stocks that occurred from 12/07/2020 through 12/11/2020 were as follows, per E*Trade, my source for this information.   

Chevron (CVX) was downgraded from Buy to Hold at Tudor Pickering.

McDonalds (MCD) was downgraded from OverWeight to Equal Weight at Stephens.

Prudential (PRU) was upgraded from Sell to Neutral at Citigroup.

Occidental Petroleum (OXY) was downgraded from Buy to Neutral at MKM Partners.

AGNC Investment (AGNC) was initiated at OverWeight at Piper Sandler.

Coca Cola (KO) was initiated at OverWeight at Wells Fargo.

Colgate Palmolive (CL) was initiated at UnderWeight at Wells Fargo.

Pepsico (PEP) was initiated at Equal Weight at Wells Fargo.

Kimberly Clark (KMB) was initiated at UnderWeight at Wells Fargo.

Procter & Gamble (PG) was initiated at OverWeight at Wells Fargo.

Total SE (TOT) was downgraded from Buy to Hold at Berenberg.

Annaly Capital Management (NLY) was initiated at Buy at Argus.

Nucor (NUE) was initiated at Equal Weight at Morgan Stanley.

Chevron (CVX) was reiterated at OutPerform at Cowen.

Kimco Realty (KIM) was upgraded from Equal Weight to OverWeight at Wells Fargo.

Park Hotels & Resorts (PK) was upgraded from Equal Weight to OverWeight at Wells Fargo.

Ares Capital (ARCC) was downgraded from OverWeight to Equal Weight at Barclays.

HealthPeak Properties (PEAK) was downgraded from Equal Weight to UnderWeight at Wells Fargo.

Chimera Investment (CIM) was downgraded from Equal Weight to UnderWeight at Barclays.

Ares Capital (ARCC) was downgraded from OverWeight to Neutral at Wells Fargo.

Crown Castle International (CCI) was upgraded from Hold to Buy at Deutsche Bank.

Energy Transfer LP (ET) was upgraded from Equal Weight to OverWeight at Morgan Stanley.

Williams Cos (WMB) was downgraded from OverWeight to Equal Weight at Morgan Stanley.

Royal Dutch Shell (RDS.B) was reiterated at OutPerform at Cowen.

Upgrades/downgrades and so on regarding my stocks that occurred from 12/14/2020 through 12/19/2020, the week just ended, were as follows.

McDonalds (MCD) was upgraded from Neutral to Buy at UBS.

National Health Investors (NHI) was upgraded from UnderWeight to Sector Weight at KeyBanc.

Welltower (WELL) was upgraded from Sector Weight to OverWeight at KeyBanc.

Digital Realty (DLR) was downgraded from OverWeight to Sector Weight at KeyBanc.

HealthPeak Properties (PEAK) was downgraded from OverWeight to Sector Weight at KeyBanc.

AGNC Investment (AGNC) was initiated at Hold at Jeffries.

Annaly Capital Management (NLY) was initiated at Buy at Jeffries.

American Electric Power (AEP) was resumed at Buy at Mizuho.

Emerson Electric (EMR) was upgraded from Hold to Buy at Deutsche Bank.

Medical Properties Trust (MPW) was upgraded from Hold to Buy at Deutsche Bank.

Exelon (EXC) was upgraded from UnderPerform to Neutral at Bank of America.

Exxon Mobil (XOM) was upgraded from Equal Weight to OverWeight at Wells Fargo.

Park Hotels & Resorts (PK) was upgraded from Sell to Neutral at Citigroup.

Royal Dutch Shell (RDS.B) was upgraded from Equal Weight to OverWeight at Wells Fargo.

Occidental Petroleum (OXY) was upgraded from UnderWeight to Equal Weight at Wells Fargo.

Kimco Realty (KIM) was upgraded from Neutral to Buy at Citigroup.

Southern Co (SO) was upgraded from Sector Perform to Sector OutPerform at Scotiabank.

Chevron (CVX) was downgraded from OverWeight to Equal Weight at Wells Fargo.

Phillip Morris (PM) was downgraded from Buy to Hold at Edward Jones.

Exxon Mobil (XOM) was upgraded from Neutral to Buy at Goldman.

General Electric (GE) was upgraded from Sell to Hold at DZ Bank.

Pfizer (PFE) was downgraded from OutPerform to Sector Perform at RBC Capital Markets.

AT&T (T) was downgraded from OverWeight to Equal Weight at Morgan Stanley.

Kinder Morgan (KMI) was downgraded from OutPerform to Neutral at Credit Suisse.

Magellan Midstream Partners LP (MMP) was downgraded from OutPerform to Neutral at Credit Suisse.

Freeport McMoRan (FCX) was initiated at Buy at Johnson Rice.

Occidental Petroleum (OXY) was resumed at InLine at Evercore ISI.

Spirit Realty Capital (SRC) was resumed at Neutral at Baird.

Annaly Capital Management (NLY) was upgraded from Market Perform to OutPerform at Keefe Bruyette.

Digital Realty (DLR) was upgraded from Hold to Buy at TD Securities, and also at Edward Jones.

McDonalds (MCD) was initiated at Buy at Northcoast.

Paychex (PAYX) was resumed at OverWeight at Wells Fargo.

As we head into the final days of 2020, the market, or at least the major averages, are at all-time highs, based on various valuation methodologies. Returns are based on two factors, how much you pay, and how the company and stock performs, the latter of which is at least partially dependent upon the economy and the markets. History has shown that buying in at a market top does not usually yield high returns. Based on that, I recommend taking profits if available, or at least refrain from buying more, and wait for better entry points.

JT

That the unexpected post-election stock rally refuses to die is the main market story since November 3^rd. After a month-end swoon on Monday, November 30^th, the rally resumed the next day, and continued on through the rest of the week. Even as the number of Covid cases approaches the worst levels of last March, the impending release of vaccines from Pfizer and Moderna seems to be buoying stocks. They certainly aren’t being supported by the latest economic statistics, which show the recovery slowing greatly since the end of the summer.

Stocks on my lists going ex-dividend next week are listed following. The stocks and/or CEFs, ex-dividend dates, and yields, as of Friday’s close, are as indicated below:

Kimco Realty (KIM), 12/08/2020, 4.21%.

Public Service Enterprise Group (PEG), 12/9/2020, 3.40%.

Medical Properties Trust (MPW), 12/9/2020, 5.40%.

Occidental Petroleum (OXY), 12/9/2020, 0.24%. OXY is on my Tier4 (not recommended) list, as a consequence of reducing the quarterly dividend to a penny per share. That is almost as outrageous as current interest rates on CD’s and savings accounts.

Newmont Mining (NEM), 12/10/2020, 1.75%. NEM was never recommended for the dividend, but rather as a speculation on precious metals. It finally happened, going from the mid-30’s to the mid-60’s in 2020. If you haven’t yet sold, I would say do it soon.

Williams Cos (WMB), 12/10/2020, 7.42%.

Golub Capital (GBDC), 12/10/2020, 8.20%.

Crown Castle International (CCI), 12/14/2020, 3.18%.

Iron Mountain (IRM), 12/14/2020, 8.81%.

Digital Realty (DLR), 12/14/2020, 3.35%.

Of the fifteen CEFs I track, five will be going ex-dividend this coming week, and two more will likely be going ex-dividend also in the same time frame, but have not yet announced. All are monthly payers except for one exception, as noted.  

Gabelli Utility Trust (GUT), 12/10/2020, 7.59%.

Gabelli Dividend & Income Trust (GDV), 12/10/2020, 6.25%.

BlackRock Enhanced Equity Dividend Trust (BDJ), 12/14/2020, 7.23%.

Nuveen Real Asset Income and Growth Fund (JRI), 12/14/2020, 9.10%.

Nuveen Dow 30SM Dynamic Overwrite Fund (DIAX), 12/14/2020, 7.44%. DIAX is a quarterly payer.

The two funds that have not yet announced are:

BlackRock Energy and Resources Trust (BGR), last month’s ex-dividend date 11/13/2020, estimated yield 9.55%.

BlackRock Debt Strategies Fund (DSU), last month’s ex-dividend date 11/13/2020, estimated yield 8.16%.

Only one of my stocks will be reporting in the coming week, Greif (GEF), on 12/9/2020.

It was another slow week for upgrades/downgrades and so on regarding my stocks. The following were reported by E*Trade, my source for this information.   

NuStar Energy LP (NS) was upgraded from Equal Weight to OverWeight at Wells Fargo. As an MLP focusing on transporting shale production, NS has been among the most beaten down stocks, yet continues to pay out, thus far.

Omega Healthcare Investors (OHI) and Ventas (VTR) were both upgraded from UnderPerform to Buy at Bank of America.

Washington Prime Group (WPG) was upgraded from Neutral to Buy at Compass Point. With the elimination of the dividend, I can’t say WPG is a buy, although it may be worth holding on if you own it, perhaps it may yet recover.

Kinder Morgan (KMI) was downgraded from OverWeight to Equal Weight to Wells Fargo.

Magellan Midstream Partners LP (MMP) was downgraded from OverWeight to Equal Weight at Wells Fargo. MMP has recovered from its lows in the mid-30’s to the mid-40’s, perhaps WF thinks it has gotten ahead of itself.

Southern Co (SO) was upgraded from Equal Weight to OverWeight at Wells Fargo.

Occidental Petroleum (OXY) was downgraded from Neutral to Sell at UBS.

Verizon (VZ) was upgraded from Neutral to Buy at MoffettNathanson.

National Health Investors (NHI) and Welltower (WELL) were both downgraded from Buy to Hold at Berenberg.

Omega Healthcare Investors (OHI) was upgraded from Market Perform to Market OutPerform at JMP Securities.

Royal Dutch Shell (RDS.B) was upgraded from Market Perform to OutPerform at Bernstein.

Welltower (WELL) was downgraded from Sector Perform to Sector UnderPerform at Scotiabank.

Digital Realty (DLR) was initiated at Buy at Mizuho.

Prudential (PRU) was initiated at Buy at Goldman.

As we proceed through the holidays, it will be interesting to see if the stock rally can continue through the end of the year, or if it fizzles out. Either way, I don’t believe that it can continue indefinitely, or that good times are here to stay. My advice is to husband cash, take any outsize profits if you have them, and wait for better prices to start or add to positions.

JT

Another funny thing happened in the past week, just as it seemed the market was waking up to the deteriorating situation. The unlikely stock rally that had been ongoing since the election resumed. Go figure. I still believe this rally is uncalled for, considering the current realities, but a “Santa Claus” rally is not that unusual. Just be ready for the moment when the market discovers that the stocking has nothing in it but a lump of coal.

Meanwhile, my dividend stocks continue to generate cash into my accounts. Stocks on my lists going ex-dividend next week are listed following. The stocks and/or CEFs, ex-dividend dates, and yields, as of Friday’s close, are as indicated below:

McDonalds (MCD), 11/30/2020, 2.76%.

Kellogg Co (K), 11/30/2020, 3.59%.

Coca Cola Co (KO), 11/30/2020, 3.11%.

Realty Income (O), 11/30/2020, 4.46%. O pays monthly.

Safety Insurance Group (SAFT), 11/30/2020, 4.31%.

Kimberly Clark (KMB), 12/03/2020, 3.03%.

Pepsico (PEP), 12/03/2020, 2.83%.

Three notable misses from my recent lists of dividend payers are listed as well. Even though it is too late to buy and get the dividend, my approach to an oversight is “better late than never”.

Lumen Technologies (LUMN), formerly CenturyLink (CTL), 11/27/2020. 9.56%.

Barrick Gold (GOLD), 11/27/2020.19.59%.

Chevron (CVX), 11/17/2020. 5.65%.

Two of the fifteen CEFs I follow will be going ex-dividend next week.

First Trust Intermediate Duration Preferred & Income Fund (FPF), 12/01/2020, 6.76%. FPF pays monthly.

AllianceBernstein Global High Income Fund (AWF), 12/03/2020, 6.97%. AWF also pays monthly.

None of my stocks are scheduled to report this week.

As is typical for a holiday week, there were only a few upgrades/downgrades and so on regarding my stocks last week.

General Electric (GE) was upgraded from Perform to OutPerform at Oppenheimer.

Solar Capital (SLRC) was downgraded from Buy to Neutral at Compass Point.

Annaly Capital Management (NLY) and MFA Financial (MFA) were both initiated at Buy at BTIG Research.

Duke Energy (DUK) was initiated at OutPerform at BMO capital Markets.

Southern Co (SO) was initiated at Market Perform at BMO Capital Markets.

American Electric Power (AEP) was upgraded from Sell to Neutral at Guggenheim.

Enterprise Products Partners (EPD) was upgraded from Peer Perform to OutPerform at Wolfe Research.

Park Hotels (PK) was upgraded from Hold to Buy at Jeffries.

PennantPark Investment (PNNT) was upgraded from Market Perform to OutPerform at Keefe Bruyette.

Kellogg (K) was downgraded from OutPerform to Neutral at Credit Suisse.

Kinder Morgan (KMI) was downgraded from Peer Perform to UnderPerform at Wolfe Research.

Park Hotels (PK) was downgraded from OutPerform to Market Perform at Raymond James.

Phillip Morris (PM) was downgraded from Buy to Neutral at UBS.

The vaccine good news has managed to stop the market slide that seemed to be developing a week or so ago, as the first positive news regarding the pandemic in a while. But with the surge in cases starting to rival the March crisis levels, and considering the time it will take for the vaccines to be approved and distributed sufficiently to have a meaningful effect, it again seems like the stock rally is premature. True, the market is forward-looking, and often gains even as the situation seems to be getting worse, not better, but I have to wonder if the market is too optimistic about where we are and where we are going over the next few months. Regardless, I can’t see adding to positions at these levels, and thus I will await better buy opportunities, which I expect to materialize after the holidays. if not sooner.

JT